Beyond being y Theirst Ascott Group Limited Annual Report 2007 Contents 08 About The Ascott Group Vision, Core Purpose, Core Values 10 Leading Brands 11 Awards 12 Ascott Across the World 13 Year in Review 16 Key Achievements in 2007 18 Management 24 Milestones 2007 26 In Step with the Corporate Traveller 28 Extending the Ascott Reach 32 Residents’ and Community Programmes 35 Our People, Our Future 38 Financial Review Balance Sheet Consolidated Income Statement 44 The Ascott Group Directory 52 Corporate Office

This Annual Report is printed on Forest Stewardship Council (FSC) certified paper. y Beyond being

At The Ascott Group, beingirst first means more than just being a business leader and an industry pioneer. It’s about knowing where our successes come from.

Which is why we put our residents first. In everything we do – whether it’s changing the way we do business, opening a serviced residence in a new location or helping the local communities – we care about how our customers feel when they stay with us.

We want them to experience the freedom and familiarity of home, and most of all, to discover the warmth of our hospitality, so that they can experience life to the fullest.

Because when our residents are happy with us, we know we have made it. The moment I arrived, I felt like we were home. They have created a sense of familiarity almost effortlessly. The service was subtle, discreet, yet I could feel the warmth in all that they do for me and my family. It was a good y impression. We will certainly be back. irst Pr oviding over 20,000 homes around the world Ent ered 10 more cities and 3 more countries My y time in a different country? It wasirst like a dream come true. I saw new things, new culture, new faces. But most of all, I saw a new angle to my work that would help make Ascott’s presence felt here. What does y mean to me? It’s about claimingirst a space no one has claimed before. It motivates me to raise the bar, to create benchmarks where there were none before. Launched1st private equity fund dedicated to investing in serviced residences across China About The Ascott Group

The Ascott Group is the world’s largest international serviced residence owner-operator with about 15,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region, as well as over 6,000 units which are under development, making a total of about 21,000 units.

The Group operates three brands – Ascott, Somerset and Citadines. Its portfolio spans 55 cities in 23 countries, 13 of which are cities where Ascott’s serviced residences are being developed.

The Ascott Group is headquartered in Singapore. It pioneered Asia Pacific’s first branded luxury serviced residence in 1984. It also established the world’s first pan-Asian serviced residence real estate investment trust, Ascott Residence Trust, in 2006. Today, the Group boasts a 24-year industry track record and serviced residence brands that enjoy recognition worldwide.

The Ascott Group is the serviced residence arm of CapitaLand Limited, the largest listed real estate company in Southeast Asia by market capitalisation. Headquartered in Singapore, the multi-national company’s core businesses in real estate, hospitality and real estate financial services are focused in growth cities in Asia Pacific, Europe and the Gulf Cooperation Council (GCC) countries. The company’s real estate and hospitality portfolio spans more than 100 cities in over 20 countries.

08 About The Ascott Group Vision The leading international serviced residence company with global brands, and products and services that set new industry benchmarks. Core Purpose To contribute to the well-being and success of people who live and work away from home. Core Values Excellence We strive for excellence in serving our customers. We challenge industry norms with our performance.

Innovation We relentlessly search for and create new ways to improve our products and services to delight our customers.

Integrity We are fair and honest in our dealings with colleagues, business partners and customers.

Our Team Our different perspectives energise our team. We achieve better results as a team than we can individually.

Developing Our People We create an environment that attracts and nurtures talent. Our jobs are more than just work; they are avenues for our growth.

About The Ascott Group 09 Leading Brands

The Ascott Group offers exclusivity, hospitality and the best of global living. No matter where work or leisure takes you, we have a serviced residence specially designed to meet your needs and pleasantly surpass your expectations. Make your selection from our three award-winning brands and bask in the warmth of home wherever you are in the world.

Ascott International... because life is about living.

ASCOTT SOMERSET CITADINES THE RESIDENCE SERVICED RESIDENCE APART’HOTEL Prestigious and luxurious, Ascott Warm and caring, Somerset is ideal Vibrant and flexible, Citadines is for The Residence lavishes business for executives and their families looking individuals on the go. Just choose the travellers with excellent service in for work-life balance. Enjoy a warm and services you want to suit your lifestyle an exclusive environment. So you can stylish home with many recreational and budget. And enjoy all the freedom relax and recharge, and function at facilities and lifestyle activities. to experience the city, your way. peak performance.

10 Leading Brands Awards

The Ascott Group’s outstanding achievements have been recognised internationally for its brand, property and corporate management excellence.

Best Foreign-Invested Enterprise Best Serviced Residence (Group) Australasia’s Leading Hotel (Vietnam) The Ascott Group Ascott Auckland Metropolis The Ascott Group TravelWeekly Asia Industry Awards World Travel Awards 2006 Golden Dragon Award Jun 2007 Nov 2007 Vietnam Economic Times, in conjunction with Ministry of Planning and Investment Luxury Premier Serviced Residence New Zealand’s Leading Hotel (Vietnam) Somerset Palace Seoul Ascott Auckland Metropolis Feb 2007 The Korea Times World Travel Awards Jun 2007 Nov 2007 50 Best Employers in Vietnam Ascott International Vietnam China’s Best Serviced Apartments Best Serviced Residence Brand Navigos Group, in association with – Ascott Beijing in China Thanh Nien newspaper and AC Nielson – Ascott Shanghai Pudong – Ascott The Residence (First place) Apr 2007 – Somerset Olympic Tower, Tianjin – Somerset Serviced Residence Forbes China (Third place) Top 100 Serviced Apartments Award Sep 2007 Business Traveller China Awards – 1st Position (China) Nov 2007 The Ascott Group Best Serviced Residence Company China Association of Real Estate, The Ascott Group Luxury Premier Serviced Residence World Real Estate Academy, Business Traveller UK Awards Somerset Palace, Seoul World Executive Weekly Magazine, Sep 2007 The Korea Times The Wall Street Wire and China Consumer Nov 2007 Report website Best Serviced Residence in Asia Pacific Apr 2007 Ascott Shanghai Pudong Best Serviced Residence Business Traveller Asia Pacific Awards – Inbound and Outbound International Headquarters (IHQ) Award Sep 2007 The Ascott Group Ascott International Management TravelWeekly China Industry Awards (2001) Pte Ltd Best Serviced Residence Brand Dec 2007 Economic Development Board in Asia Pacific (Singapore) Ascott The Residence Serviced Apartment Vendor May 2007 Business Traveller Asia Pacific Awards of the Year (Runner-up) Sep 2007 Ascott International BCA Green Mark Award HR Vendors of the Year Ascott Singapore Raffles Place The Most Transparent Company Human Resources Magazine Building and Construction Authority – Hotel & Restaurants (Runner-up) Dec 2007 (Singapore) The Ascott Group May 2007 SIAS (Securities Investors Association of Singapore) Investors’ Choice Awards Excellent Performance for 2006 & 2007 Oct 2007 Somerset Serviced Residence Vietnam Guide Award Best Serviced Residence Operator Vietnam Economic Times’ The Ascott Group The Guide Magazine TTG Travel Awards Jun 2007 Oct 2007

Awards 11 Ascott Across the World

United Kingdom Russia Moscow Germany Edinburgh, London Belgium Brussels Berlin, Munich Kazakhstan Aktau, Astana

France Georgia Tbilisi Paris and 12 other cities South Korea Seoul United States Spain Japan Kyoto, Tokyo (presence in over 100 cities Barcelona Bahrain Manama China Beijing, Chongqing, Dalian, through marketing alliance Guangzhou, Hong Kong, Shanghai, with Equity Residential) United Arab Emirates Shenzhen, Suzhou, Tianjin, Xi’an Qatar Dubai Doha Thailand Bangkok The Philippines Manila

India Vietnam Hanoi, Ho Chi Minh City Bangalore, Chennai, Malaysia Kuala Lumpur, Kuching Singapore Hyderabad

Indonesia Jakarta, Surabaya

New Zealand Auckland Australia Hobart, Melbourne, Sydney

SOUTHEAST ASIA Hong Kong EUROPE Kazakhstan Indonesia Shanghai Belgium Aktau Jakarta Shenzhen Brussels Astana Surabaya Suzhou 1 57 Tianjin France Russia Malaysia Xi’an Paris Moscow properties Kuala Lumpur and 12 other cities: Kuching Japan Aix-En-Provence Spain Kyoto Bordeaux Barcelona Singapore Tokyo Cannes Ferney-Voltaire United Kingdom Thailand South Korea Grenoble Edinburgh Bangkok Seoul Lille London 55 Lyon The Philippines SOUTH ASIA Marseille GULF REGION cities Manila India Montpellier Bahrain Bangalore Nice Manama Vietnam Chennai Strasbourg Hanoi Hyderabad Toulouse Qatar Ho Chi Minh City Doha AUSTRALIA & Georgia NORTH ASIA NEW ZEALAND Tbilisi United Arab 23 China Australia Emirates Beijing Hobart Germany Dubai countries Chongqing Melbourne Berlin Dalian Sydney Munich Guangzhou New Zealand Auckland

12 Ascott Across the World Year in Review

As a value-driven company, The Ascott Group (Ascott) strives to deliver strong, sustainable returns to our stakeholders. In 2007, Ascott continued to seek innovative ways for growth and closed the year with record profit.

Following the successful launch of Ascott Residence Trust (ART), the world’s first pan-Asian serviced residence real estate investment trust, in 2006, we launched the first private equity fund dedicated to investing in serviced residences across China.

Ascott China Fund (ACF) was launched to optimise capital allocation and propel our growth in China; we raised a total capital commitment of US$500 million. The fund, which is 33% owned by Ascott, will be used to acquire suitable properties and greenfield sites in China for the development of serviced residences or rental housing properties.

2007 was also a good year for ART which is 28% owned by Ascott. ART’s portfolio value grew by 74% to S$1.49 billion from S$856 million when it was first listed in March 2006. It also expanded from an initial portfolio of 2,068 units in 12 properties to 3,461 units in 36 properties by end-2007.

Thanks to the support of our residents, partners and the industry, Ascott garnered 20 corporate, brand and property awards regionally and internationally.

RECORD PROFIT Ascott’s revenue increased by 7% to S$435.3 million; net profit was up 8% to S$177.3 million. The Group’s profit from operating assets registered a 25% growth to S$52.5 million. This was attributed to better operating performances in most of the markets where we operate as well as higher fee-based income from managing ACF and ART.

STRONG PIPELINE FOR FUTURE PORTFOLIO GAINS Ascott re-invested divestment proceeds into higher-yielding assets and the enhancement of existing properties for better yield and operating performance. We divested six properties in China, Singapore, United Kingdom and Vietnam; divestment proceeds totalled S$524.3 million and total net divestment gain was S$112.8 million.

The divestment proceeds were re-deployed to acquire and incubate more quality assets, to pave the way for greater future portfolio gain. We committed a total of S$576 million in 13 investments in China, Germany, India, Japan, Malaysia, Russia, Singapore and United Kingdom.

CONSOLIDATING LEADERSHIP POSITION We aggressively expanded our portfolio under three brands – Ascott, Somerset and Citadines. We added more than 3,000 units to our portfolio through acquisitions and managements contracts. As part of our expansion we ventured into three more countries and 10 more cities, including Tbilisi in Georgia, Astana and Aktau in Kazakhstan and Moscow, Russia. By end-2007, Ascott’s global portfolio reached 20,449 units in 55 cities across 23 countries.

We built on the Master Development Agreement (MDA) signed with The Rattha Group in 2006. The agreement set out to launch seven new properties with at least 1,000 serviced residence units in India by 2010. In 2007, we secured our fourth and fifth properties bringing the total number of units under construction to 1,178. In addition to Bangalore, Chennai and Hyderabad, we are seeking opportunities to expand into New Delhi and Mumbai.

Year in Review 13 From left: Lim Chin Beng, Chairman Jennie Chua, President & CEO Having fully acquired the Citadines Apart’hotel chain in 2004, Ascott has grown the brand beyond Europe to Asia. Since then, we have opened Citadines serviced residences in Bangkok, Hong Kong, Shanghai, Suzhou and Xi’an. More announcements were made in the year to bring Citadines to more cities in Asia, such as Chennai, Chongqing, Hyderabad, Kyoto, Munich, Singapore and Tokyo.

BUILDING LEADERSHIP AND TALENT POOL Ascott’s management bench strength was boosted with appointments of new senior management members, functional heads at the corporate office, and country heads for our overseas operations.

To develop future leaders and support our global expansion, we continued to invest in our people and set up Ascott Centre for Excellence, a global training centre in Singapore.

RETURNING TO COMMUNITY Ascott partnered volunteer welfare organisations and local communities in our home base, Singapore, and around the world. Together with these organisations, our employees and residents built homes and provided financial support to help our next generation live a better life and achieve their dreams.

LOOKING AHEAD On 8 January 2008, CapitaLand announced its voluntary cash offer for Ascott with the intention of delisting Ascott. The offer has since closed on 11 March 2008, on which CapitaLand held 98.35% of the total number of shares in issue, and notices exercising the right of compulsory acquisition under Section 215(1) of the Singapore Companies Act have been issued to shareholders. Accordingly, the trading of Ascott’s shares on the SGX-ST has been suspended since 12 March 2008, and Ascott will be delisted from the Main Board of the SGX-ST subsequent to such compulsory acquisition.

Ascott had in the past two years embarked on the development of a capital efficient business model with the establishment of ART and ACF to propel its growth. It is envisaged that when Ascott is privatised, this approach to achieve sustainable growth can be accelerated given CapitaLand’s extensive track record and experience. As a private entity, Ascott will also enjoy greater ease in tapping CapitaLand’s more established real estate development and financial services to strengthen its leadership position in the market.

Lim Chin Beng Jennie Chua Chairman President & CEO

12 Mar 2008

Year in Review 15 Key Achievements in 2007

+10 more cities Expanded presence to Aktau, Astana, Chongqing, Edinburgh, Hyderabad, Kyoto, Moscow, Munich, Shenzhen & Tbilisi +3 more countries Entered Georgia, Kazakhstan & Russia +36 properties In Australia, China, Germany, Georgia, India, Japan, Kazakhstan, Malaysia, Russia, Singapore, Thailand, the Philippines, United Kingdom & Vietnam 20 awards Recognised for brand, property & corporate management excellence Revenue S$435.3 mil Raised capital commitment for Ascott ChinaFund US$500 mil Profit from operating assets S$52.5 mil Net profit S$177.3 mil Key Achievementsin2007 +25% +8% +7% 17

Red Square, Moscow, Russia Management

1 Jennie Chua (Ms) President & CEO 3 6 2 2 Chong Kee Hiong 1 5 Deputy CEO (Finance & Investment) 4 7 3 Gerald Lee Deputy CEO (Operations) 4 Hazel Chew (Ms) Chief Financial Officer 5 Ee Chee Hong CEO (China) 6 Ng Lai Leng (Ms) Chief Corporate Officer 7 Tony Soh Chief Strategy & Planning Officer

18 Management Jennie Chua (Ms) President & Chief Executive Officer

Ms Chua is President & CEO of The Ascott Group. She leads Ascott’s 5,000 employees in 23 countries to further grow the Group’s presence and build its reputation as the leading international serviced residence company.

Ms Chua was appointed Non-Executive Director and member of the Executive Committee of the Company on 16 January 2007 and subsequently as President & CEO from 1 August 2007. Currently, she is a Director of several companies and Boards and also serves on Government and Community Services’ Boards and Committees, both locally and internationally. She was previously President and CEO of Raffles Holdings Limited from April 2003 to January 2007 and Chief Strategic Relations Officer of CapitaLand Limited till July 2007.

Ms Chua is a Director of Ascott Residence Trust Management Limited (ARTML), a subsidiary of The Ascott Group. ARTML is the manager of Ascott Residence Trust, the world’s first pan-Asian serviced residence real estate investment trust listed in March 2006. She is also a Director of Ascott China Fund, the first private equity fund dedicated to investing in serviced residences across China.

Ms Chua is also Chairman of Sentosa Cove, Raffles Hotel, Old Parliament House, Community Chest, Singapore Film Commission, Khoo Teck Puat Hospital, the International Advisory Council for Tourism, and the Tourism Industry Skills & Training Council. She is 1st Deputy Chairman of the Singapore International Chamber of Commerce and Deputy Chairman of CapitaLand ILEC, Temasek Foundation and Singapore Workforce Development Agency. She sits on the boards of the National Healthcare Group, NYU Tisch School of the Arts – Asia, and MOH (Ministry of Health) Holdings, to name a few.

She is a member of the Temasek Advisory Panel and the Pro-Enterprise Panel. Ms Chua is also on the Board of Trustees of Nanyang Technological University, Singapore, and Cornell University, New York, USA.

Ms Chua is also a Justice of the Peace and Singapore’s Non-Resident Ambassador to The Slovak Republic.

She has been honoured with numerous accolades and awards, including two Singapore National Day awards, 25 Stars of Asia 2003, Person of the Year – Asia Pacific (Hotel) 2002, National Productivity 2002, Pacific Area Travel Writers Association Hall of Fame 2000, Hotelier of the Year 1999, Woman of the Year 1999, Champion of the Arts 1999 and Independent Hotelier of the World 1997.

Ms Chua graduated from the School of Hotel Administration, Cornell University, New York, USA with a Bachelor of Science in 1971.

Chong Kee Hiong Deputy Chief Executive Officer (Finance & Investment) concurrently Chief Executive Officer, Ascott Residence Trust Management Limited

Mr Chong was appointed Deputy CEO (Finance & Investment) of The Ascott Group in September 2004. He oversees the finance, asset management, business development as well as investor relations functions of the Group.

Mr Chong is concurrently CEO of Ascott Residence Trust Management Limited (ARTML), a subsidiary of The Ascott Group. ARTML is the manager of Ascott Residence Trust, the world’s first pan-Asian serviced residence real estate investment trust listed in March 2006. As CEO of ARTML, Mr Chong is responsible for spearheading the overall strategic planning, business, investment and operational strategies.

Mr Chong was Chief Financial Officer of Raffles Holdings Limited from May 2001 to September 2004. He was also a member of its management committee which is responsible for charting Raffles’ business and development strategies.

Mr Chong began his career with KPMG Peat Marwick in 1990, upon graduating from National University of Singapore with a Bachelor of Accountancy. He is a member of Institute of Certified Public Accountants of Singapore and also serves as a member of the Government Parliamentary Committee for Finance and Trade and Industry Resource Panel. He is a member of the Audit Committee of Sentosa Development Corporation and also the Treasurer and General Committee member of The Orchid Country Club.

Management 19 Gerald Lee Deputy Chief Executive Officer (Operations)

Mr Lee was appointed Deputy CEO (Operations) in August 2007. He oversees The Ascott Group’s global operations in over 50 cities and more than 20 countries across Asia, Europe and the Gulf region.

Prior to this, Mr Lee was CEO (Europe) of Ascott International, a subsidiary of The Ascott Group. He was appointed to the position in January 2006 and was responsible for directing the company’s growth strategies in Europe. Mr Lee was concurrently holding the position of Chief Brand & Marketing Officer and was charged with driving the Group’s branding and marketing strategies to further strengthen its global brand leadership.

Prior to joining Ascott in April 2005, he was Senior Vice President of Corporate Marketing at CapitaLand Limited, where he was responsible for boosting the company’s global market presence. Prior to joining CapitaLand, Mr Lee was Assistant Chief Executive (Leisure) at Singapore Tourism Board. He has also worked with the Sentosa Development Corporation and Singapore’s Ministry of Trade and Industry.

Mr Lee holds a Bachelor of Science (with Distinction) from The School of Hotel Administration, Cornell University, New York, USA.

Hazel Chew (Ms) Chief Financial Officer

Ms Chew was appointed Chief Financial Officer of The Ascott Group in May 2005. She oversees Ascott’s financial operations across more than 50 cities in Asia Pacific, Europe and the Gulf region. Her responsibilities include overseeing the Group’s financial and management accounting, internal controls, treasury and tax.

Trained in corporate secretarial matters and conversant with Singapore listed companies’ reporting and disclosure requirements, Ms Chew is also Joint Company Secretary of the Group.

Prior to joining Ascott, Ms Chew was Vice President of Finance and Management Accounting in charge of group financial reporting at CapitaLand Limited. With more than 20 years of working experience, she has revamped and computerised finance processes and instituted internal control systems across multi-country operations. She has also been involved in project feasibility studies, mergers and restructurings, as well as Public Offering launches.

Ms Chew holds a Bachelor of Accountancy from National University of Singapore and is a graduate from the Institute of Chartered Secretaries and Administrators.

Ee Chee Hong Chief Executive Officer (China)

Mr Ee was appointed CEO (China) in July 2007. As CEO (China), Mr Ee oversees Ascott’s operations in China. He is responsible for driving the company’s strategies for growth in China.

Prior to joining The Ascott Group, he was General Manager for South China at CapitaLand China Holdings since December 2002. He was responsible for establishing CapitaLand’s Operations offices in the south of China as well as sourcing for new property investment opportunities within China’s Pearl River Delta region. Mr Ee has also held senior positions in CapitaLand Limited, Orange Gum Pte Ltd, Embassy of the Republic of Singapore in Japan and Singapore’s Economic Development Board.

Mr Ee was awarded the MNC – EDB Undergraduate Scholarship (Japan) in 1988 to study Engineering in Tokyo Institute of Technology. While studying in Japan, he was awarded the IBM Asia Fellowship in 1992. He graduated with a Masters in Engineering.

20 Management Ng Lai Leng (Ms) Chief Corporate Officer

Ms Ng was appointed Chief Corporate Officer of The Ascott Group in April 2007. As Chief Corporate Officer, she is responsible for the effective and efficient operations of the Group’s corporate functions including human resource, legal, corporate secretariat and info-communications.

Prior to joining Ascott, Ms Ng was Chief Financial Officer of Raffles Holdings Limited. She was responsible for all its financial functions including group accounting, corporate finance, group treasury and taxation. She was concurrently the Company Secretary.

Ms Ng led the finance team in the preparation and successful listing of Raffles Holdings on Singapore Stock Exchange in 1999. At Raffles Holdings, Ms Ng also had responsibilities in various critical functions including business development and asset management, and was part of the pre-opening team responsible for the development, marketing and operations of Raffles City Complex.

Ms Ng holds a Bachelor of Accountancy (Honours) from National University of Singapore. She is a Fellow of Institute of Public Accountants of Singapore as well as a Fellow of Certified Public Accountants Australia.

Tony Soh Chief Strategy & Planning Officer

Mr Soh joined The Ascott Group on 1 November 2007. As Chief Strategy & Planning Officer, he leads the Strategic Planning team in charting and driving growth strategies for the Group.

Prior to joining Ascott, Mr Soh served as an Administrative Officer of the Singapore Civil Service. He was Senior Director, Policy and Operations at Ministry of Home Affairs, where he was responsible for formulating and implementing policies for the Ministry, as well as coordinating operations involving departments such as Police, Civil Defence, Immigration, Prisons and Internal Security.

Mr Soh has held senior appointments at the Ministry of Defence and Singapore Tourism Board. He has also served as a Board Member of National Heritage Board, Singapore Discovery Centre Limited, and Board of Trustees of Industrial and Services Co-operative Society Limited.

Mr Soh holds a Bachelor of Business Administration (Tourism Management) from University of Hawaii. He attended the Program for Management Development at Harvard Business School in 2004.

Management 21 Management

1 Alfred Ong 6 Richard Ong 5 SVP, Operations SVP, Operations 1 9 3 6 2 Dean Minett 7 Anthony Ow CGM, Australia/New Zealand CGM, Gulf Cooperation 2 10 4 8 3 Rebecca Hollants Van Loocke (Ms) Council Region 7 RGM, UK 8 Anne Chua (Ms) 4 Anthony Khoo SVP, Group Treasury SVP, Brand & Marketing 9 Jean-Claude Erne 5 Benjamin Wong SVP, Product & Technical Services CGM, India 10 Eddie Lim CGM, Thailand

22 Management 1115 18 11 Eric Fombonne 18 Elsie Ozaku (Ms) 14 RGM, France Regional Cities CGM, Japan 21 19 12 Sym Lee 19 Henry Lim 12 16 SVP, Operations CGM, Vietnam 22 13 17 20 13 Philippe De L’espinay 20 Eric Duflos RGM, Paris RGM, Belgium, Spain, 14 Ronald Tay Germany, Eastern Europe Chief Investment Officer 21 Philip Lim 15 Kenneth Rogers CGM, Indonesia CGM, Korea 22 Gerard Weller 16 Arthur Gindap SVP, Business Development CGM, The Philippines

17 Lau Yin Cheng CGM – Country General Manager SVP, Human Resource RGM – Regional General Manager SVP – Senior Vice President

Management 23 Milestones 2007

JANUARY • Opened first Citadines in Thailand, Citadines Bangkok Sukhumvit 16. • Announced sale of 40.2% stake in Somerset Chancellor Court to Ascott Residence Trust (ART) for US$14.3 million (S$22 million). • Signed a Memorandum of Understanding (MOU) with Mitsubishi Estate Co Ltd to develop a serviced residence, Citadines Tokyo Shinjuku. Ascott will take a 40% stake in the venture.

FEBRUARY • Expanded into Russia through a MOU with Amtel Properties Development (Amtel) to establish a US$100 million fund to launch 1,000 serviced residence units by 2010. Separately, Ascott will also manage Somerset Strogino in Moscow for Amtel. • Announced the divestment of Hotel Asia in Singapore for S$147 million. Ascott reaped an estimated net gain of S$22.2 million from the deal. • Opened Citadines Suzhou Xinghai, the Group’s first serviced residence in Suzhou.

MARCH • Secured a contract from ART to manage the Group’s first flagship serviced residence in the Philippines, Ascott Makati, formerly known as Oakwood Premier Ayala Center. • Expanded presence in China through a US$44.6 million investment in Citadines Xi’an Central, which opened in August 2007, and Citadines Shanghai Biyun which opened in December 2007. • Secured a contract to manage Somerset Amar Garden, the Group’s sixth Somerset property in Bangkok.

APRIL • Opened first property in Bahrain, Somerset Al Fateh, Manama. • Signed an agreement with the Land Requisition Office of the Guangzhou Municipal People’s Government to receive compensation of RMB1 billion (S$198.7 million) for the compulsory acquisition of the Masters Golf & Country Club. • Launched Ascott China Fund, the first private equity fund dedicated to investing in serviced residences across China.

JUNE • Signed an agreement with The Rattha Group (Rattha) to acquire Ascott’s fourth and largest property in India. This is part of the agreement between both parties to have seven properties by 2010. Ascott will take a 40% stake in Citadines Chennai OMR Gateway. • Secured a contract from ART to manage a property in Melbourne, which was subsequently re-branded in October as Somerset Gordon Heights, Melbourne. • Entered Shenzhen by acquiring Somerset Garden City, Shenzhen for RMB246 million (S$48.5 million). • Extended reach to Munich by buying a serviced residence for 21.78 million (S$45.05 million). The property will open as Citadines Munich Arnulfpark.

24 Milestones 2007 JULY • Announced the divestment of Somerset Bayswater, London for a total consideration of £56.1 million (S$172.2 million), in which Ascott has a 50% stake. • Acquired the Group’s first property in Edinburgh for £24.7 million (S$76.1 million). The property will open as Citadines Edinburgh Quartermile. • Ventured into Kazakhstan with management contracts from Tsesna Corporation for Ascott Astana and Citadines Aktau. Ascott and Tsesna also agreed to establish a strategic framework for developing and managing serviced residences in Kazakhstan.

AUGUST • Ms Jennie Chua took over from Mr Cameron Ong as Ascott’s President & CEO. Mr Gerald Lee was appointed as Deputy CEO (Operations), with Mr Chong Kee Hiong as Deputy CEO (Finance & Investment). • Signed an agreement to acquire interest in a leasehold serviced residence in Singapore for S$79.3 million. Citadines Singapore Mount Sophia will be Ascott’s first Citadines in the city. • Divested two properties, Citadines Shanghai Biyun and Somerset Youyi, Tianjin, to Ascott China Fund.

SEPTEMBER • Secured a contract to manage Somerset Saigon City in Ho Chi Minh City. • Expanded into Chongqing by acquiring Citadines Chongqing Minzu for RMB127.67 million (S$25.3 million).

OCTOBER • Entered Georgia through a contract from Amtel to manage Citadines Tbilisi Freedom Square. • Entered Kyoto by jointly acquiring a prime site with Mitsubishi Estate Co Ltd for the development of Citadines Kyoto Gojo. Ascott will hold a 40% stake in the development.

NOVEMBER • Signed an agreement to acquire a serviced residence for RM112.5 million (S$47.5 million). Somerset Ampang, Kuala Lumpur will be Ascott’s sixth property in Malaysia.

DECEMBER • Signed an agreement with Rattha to acquire Ascott’s fifth property in India. Ascott will take a 49% stake in Citadines Hyderabad Hitec City. • Opened Somerset Emerald City, the Group’s second serviced residence in Suzhou. • Secured contracts from ART to manage its 18 rental housing properties in eight wards in Tokyo, namely Shinjuku, Bunkyo, Meguro, Setagaya, Nakano, Suginami, Nerima and Taito Ku.

Milestones 2007 25 In Step with the Corporate Traveller

By anticipating the corporate traveller’s every need, Ascott’s serviced residences deliver better value to residents and asset owners alike.

All over the world, companies are increasingly sending executives abroad on short-term assignments or relocating them for overseas postings. For these road warriors, corporate travel demands constant adaptation to new environments as well as different cultural and social settings.

Ascott’s serviced residences offer the perfect antidote to the rigours of business travel by pulling out all the stops to make corporate travellers feel perfectly at home, even as they live and work in unfamiliar cities around the globe.

THE BEST OF BOTH WORLDS Serviced residences typically combine the spaciousness, privacy and comfort of a home with the services of a hotel.

Ascott’s serviced residences go one step further to offer more space, complete with fully-furnished living and dining areas and well-equipped kitchens, where residents can prepare their own meals or entertain if they wish. Top quality amenities such as high-speed broadband access, cable television and a home entertainment system allow corporate travellers to be in touch, informed and entertained at all times.

Many of the services associated with hotels such as the front office, laundry, housekeeping and breakfast are available at our serviced residences. Over and above these offerings, optional outsourced services ranging from grocery and meal delivery to babysitting make daily life even more pleasant for residents.

The heightened security coverage provided by our properties gives residents complete peace of mind. As serviced residences are more personalised than hotels, employees know residents by name and are always alert to strangers in their midst.

At our properties, social and networking events are held regularly to help residents, their spouses and families thrive in their new surroundings and enjoy expatriate life.

PAMPERING RESIDENTS, REWARDING INVESTORS Serviced residences offer owners and shareholders superior returns as their operating costs are significantly lower than hotels. By eliminating certain high-cost and labour intensive services found in hotels, serviced residences maintain a leaner cost structure without sacrificing the creature comforts associated with quality living. At the same time, space utilisation is at an optimum as there is little need for extensive common areas like convention space and lobbies as is the case with hotels.

Taken together, the efficient use of space and lower operational expenses for serviced residences translate into higher margins and lower development costs. These savings are passed on to our residents as more living space and better rates.

The continued momentum for growth in the serviced residence sector is fuelled by the rise in cross-border investments and new global business patterns. Increasingly, executives of multinational companies are taking on overseas assignments stretching from weeks to months, as well as overseas postings of two to three years.

26 In Step with the Corporate Traveller In mature markets, the serviced residence sector typically makes up 5%–10% of the temporary accommodation business. In newer markets, however, this figure is under 5%, offering tremendous upside potential for the future.

Serviced residences also enjoy a higher level of income stability in comparison to hotels as residents stay for longer periods, thus lowering turnover and marketing costs.

THE ASCOTT BUSINESS MODEL As an owner-operator, Ascott owns, leases and manages serviced residences. As an operator, our revenue is derived from management fees comprising a percentage of gross operating revenue and a percentage of gross operating profit (GOP). As an investor, we earn yields on our investments while simultaneously enjoying capital gains from the divestment of properties when market conditions are in our favour.

Ascott maximises yields by continually re-allocating capital to higher-yielding assets and markets. We also enhance our existing assets by upgrading our properties in anticipation of changing market demands, and re-configuring and refurbishing them to maximise revenue-generating space.

As many of the specifications of our facilities are standardised, Ascott reaps the benefits of lower purchasing costs, consistent quality and operational standards.

The robust expansion of our global portfolio is achieved through a mixture of management contracts, equity participation and leases. We continue to focus on locating our properties in large financial and commercial cities with a critical mass of business activities and expatriates. We typically manage several properties in these cities so as to enjoy economies of scale and command premium positioning. In larger cities, we employ a product-tiering approach, with each of our three global brands – Ascott, Somerset and Citadines – catering to different customer segments and budgets.

The Ascott business model is further enhanced by our diversification across more than 50 cities in 23 countries, making us the world’s largest international owner-operator of serviced residences. Our extensive international portfolio of properties and our expertise in managing global accounts enable us to retain our key customers even when their operations are re-located across borders.

We monitor the performance of our properties by tracking their revenue per available unit (RevPAU), GOP margin and earnings before interest, tax, depreciation and amortisation (EBITDA) yield in order to ensure optimal asset management of our portfolio.

Our performance in a particular country is the outcome of a range of factors such as economic growth, regulatory environment, foreign direct investment and the number of expatriates as well as foreign and domestic business travellers in that territory.

In many of the cities where we operate, our impeccable reputation over the last 24 years gives us an edge over our competitors. Our success is built on the solid foundation of an extensive international marketing and distribution network, and a diversified customer base of multinational companies.

In Step with the Corporate Traveller 27 Extending the Ascott Reach

Ascott has been winning new clients and expanding its customer base with quality products and a strong service culture as well as through strategic marketing and sales.

As businesses become increasingly international, more corporate executives are relocating for work and embracing new and different lifestyles away from home. Our brands are at the forefront of these changes, supporting the distinctive lifestyles of our residents and anticipating their needs.

On a corporate level, it is imperative that we strengthen Ascott’s well-deserved status as an industry leader in the international serviced residence industry. In 2007, the Group launched key marketing and promotion initiatives to extend our reach, grow our existing business and sharpen the positioning of our brands in the face of keen competition.

NICHE BRANDS, SMOOTH LAUNCHES Our brands cater to the distinct lifestyle needs of business and leisure travellers alike. Ascott lavishes top executives with luxurious facilities and warm, personalised attention while Somerset strikes a harmonious work-life balance for executives and their families in their home away from home. Citadines, a European chain acquired by the Group in 2004, is tailor-made for independent travellers seeking a vibrant experience. We have since grown the brand beyond Europe to Asia and opened Citadines serviced residences in China and Thailand.

During the year, a series of brand and property collaterals were developed to communicate the unique features of our brands in support of sales and marketing.

In the face of an ever-changing business environment, it is vital that our new properties are branded, marketed and launched speedily. Ascott’s competitive edge is reflected in our seamless ‘Pre-Opening Process’ (POP), where teams of experienced specialists accelerate the launch of new properties to achieve occupancy targets and ensure brand and product consistency across all our properties. In 2007, we enlarged our POP team to bring together expertise in areas such as operational set-up, training, budget control and resource planning, all of which are vital in ensuring the successful launch of our new properties. In the year, a total of nine properties in Australia, Bahrain, China, the Philippines and Thailand were successfully launched. Our POP teams are now preparing to open about 10 new properties in 2008.

INSPIRED BY ‘LIFE’ Every day our employees live our brand values – Local Touch, Individuality, Freedom to Breathe, and Exceeding Expectations – or ‘LIFE’ in short, as they deliver service from the heart.

In 2007, Ascott’s employees who epitomised these ‘LIFE’ values in their work were recognised and rewarded through our ‘LIFE-Heartware’ programme. Launched in 2006, this programme motivates our employees to deliver consistent service standards throughout our properties worldwide.

On-going customer feedback has also helped us to deliver better service and enabled us to make ‘LIFE’ values come alive for every resident.

28 Extending the Ascott Reach RAISING OUR INTERNATIONAL PROFILE During the year, we raised our visibility in key markets through increased advertising and promotions on television and in print, as well as open communication with the media.

An inaugural television commercial (TVC) for The Ascott Group was launched across several regions in mid-February 2007 to communicate its global reach and stature as an industry leader in Asia Pacific, Europe and the Gulf region. The TVC was broadcast in regional media such as CNN, Discovery, Discovery Travel & Living and BBC World (Middle East and India), as well as terrestrial channels in Singapore such as Channel NewsAsia, Channel 5, Channel 8 and Channel U over 10 weeks. In China, an increasingly significant market for the Group, our Mandarin TVC was also broadcast in one of the country’s local television stations, Phoenix TV.

Riding on positive response, the TVC was re-run on BBC World (Asia Pacific, Middle East and India), Discovery, Discovery Travel & Living and Channel NewsAsia in October and November 2007. The TVC went a long way towards reinforcing our brand positioning.

We launched four advertising campaigns in the print media regionally and locally in 2007 to heighten awareness of Ascott International and its three brands of serviced residences. These campaigns included the Citadines brand campaign from March to May, the Somerset brand campaign from May to July, the Ascott brand campaign from August to September and the Ascott International campaign from October to November.

Our advertisements were featured in key regional titles such as International Herald Tribune (Asia Pacific), The Wall Street Journal Asia, Fortune Asia, Forbes Asia, Forbes China, The Economist Asia Pacific, Business Traveller Asia Pacific, TTG Asia and TravelWeekly. Local coverage in the Singapore market included The Straits Times, The Business Times and Lianhe Zaobao.

In addition to advertising, we raised the international profile of our company and brands by intensifying our efforts in engaging the local, regional and international media. This enabled the public to get independent third-party views of our company and properties. Extensive media coverage on Ascott and our properties were generated in about 300 key local, regional and international media outlets. This was achieved through multiple communication initiatives including press releases and press conferences, property tours as well as interviews of senior management by business and lifestyle reporters from around the world.

REFRESHED WEBSITES, FRUITFUL PARTNERSHIPS The revamp of our websites began in 2006 with the introduction of a new Citadines website. By end-2007, the revamp was completed with the launch of individual websites for the other two brands, Ascott and Somerset, as well as a new and improved corporate website.

The sites of our proprietary brands have been designed to strengthen the profile and appeal of our brands in the online marketplace. Visitors now have faster access to content and information, and enjoy greater ease of making online reservations of serviced residences that best suit their needs.

Extending the Ascott Reach 29 The corporate website has a fresh, new look and an improved format to make browsing easier and faster. Systematically divided into dedicated sections for shareholders, investors and the media, the site features essential corporate data such as Ascott’s portfolio of properties, news, financial results and presentations.

To generate brand interest through dynamic channels, we partnered Citibank again to offer our properties to their card members under the Citibank World Privileges (CWP) programme. Through CWP, our properties enjoy exposure to 23 million cardholders across 20 countries in Asia Pacific, Europe, the Gulf region and Africa.

Likewise, we forged partnerships with other selected bank/credit card players including Visa International, Diners, ABN Amro and DBS Bank to promote our properties to their members.

MAXIMISING CUSTOMER SATISFACTION At Ascott, our all-encompassing approach to sales and marketing ensures that our residents and corporate clients enjoy a pleasant and efficient experience when they make bookings with us. This is made possible by improvements in our processes, enhanced Customer Relationship Management and reservation systems, and a sales force covering 23 countries.

Ascott currently maintains close to 45,000 corporate customer accounts. Our strategic corporate clients were invited to join The Link Club, Ascott’s corporate loyalty programme. The Club allows us to keep in touch with corporate bookers while demonstrating our appreciation for their loyalty through rewards and exciting lifestyle offerings. Our rapid expansion means that our corporate clients can look forward to staying with us in an increasing number of destinations across the globe.

Residents and corporate clients enjoy easy access to our properties worldwide through our satellite Global Central Reservation Offices (GCROs) strategically located in China, France, Singapore, Thailand and the United Kingdom. This integrated reservation system empowers our officers to check on the availability of serviced residences, to confirm bookings instantaneously as well as to respond swiftly to customer enquiries.

Our sales management teams around the world interlock with our GCROs, bridging the links between our growing client network, and our reservations and after-sales services.

Consistent quality is a cornerstone of the Ascott business model and the uncompromising service promise on which our brand reputation is built. Strong engineering and operations teams underpin the efficiency and high service standards of our properties. From the superior design of our residences and their contemporary interiors to the services offered by our reservation and service employees, we strive to provide consistent service standards in every aspect of our operations. To ensure our brand promise is delivered without compromise, regular audits of service and product standards are conducted at all properties.

30 Extending the Ascott Reach BOOSTING SALES REVENUE Throughout 2007, we challenged ourselves to grow our customer base and ensure high shareholder returns.

We expanded the use of the Global Distribution System by our properties worldwide and increased returns from this channel by more than four times. We also embarked on a request-for-proposal tool, to tap new sales opportunities and customer bases, and established new distribution channels with wholesalers and third-party distributors.

Through The Link Club, we generated more than S$11 million in revenue in 2007. Today, we have close to 3,000 members who are influential decision makers at multi-national companies worldwide.

In a bid to expand our distribution channels, we forged a partnership with Asia Miles in 2007, paving the way for us to tap into the membership base of more than 15 airlines worldwide.

In addition, our partnership with various credit card companies and online distribution channels significantly broadened our distribution channels and led to a substantial increase in revenue across the Group.

STAYING IN TOUCH WITH RESIDENTS AND PARTNERS At Ascott, we believe in enriching the lives of business travellers who stay with us. Our quarterly lifestyle magazine, Ascott Living, is designed to help our residents ease into the challenges and discover the joys of global living by recommending holiday destinations, sharing travel and shopping tips, and introducing Ascott’s properties in key gateway cities. Each issue also profiles Ascott’s residents around the world who have found a home away from home at our properties. Launched in November 2006, Ascott Living’s readership has grown from 200,000 to 300,000. The magazine is available in every serviced residence unit in our properties worldwide, and by subscription.

Reaching out to partners and corporate clients, our bi-monthly e-newsletter, Ascott World, provides updates on Ascott’s latest business and operational developments. It also highlights the latest property promotions. Since its launch in mid-2006, Ascott World’s subscriber base has more than doubled to 8,000.

COMMUNICATING WITH AN INTERNATIONAL AUDIENCE THROUGH THE MEDIA Advancing our objective of delivering timely and accurate information on Ascott to an international audience, we provided regular updates on key corporate, operational and property developments through the local, regional and international media.

Apart from our half-yearly financial results briefings, we actively engaged both the business and lifestyle media through press conferences, site visits and familiarisation trips in 2007. We regularly put out press releases on Ascott which are also easily accessible on our corporate website. These efforts generated extensive coverage of the company’s business developments and new properties through nearly 300 leading media outlets.

Key local media as well as regional news and information agencies such as Bloomberg, Reuters, Dow Jones, Agence France-Presse, International Herald Tribune and The Wall Street Journal Asia continued to keep their readers abreast of developments at Ascott. The media generally portrayed Ascott as a global leader in the serviced residence industry that will continue to maintain the momentum of its expansion by growing its portfolio in gateway cities and new markets.

Extending the Ascott Reach 31 Residents’ and Community Programmes

Through our range of residents’ and community programmes, we hope to make a meaningful difference to local communities and enrich the lives of our residents.

The Ascott Group is committed to serving the needs of our residents and the well-being of the wider community. Our Heartware service initiatives focus on supporting the lifestyle needs of global business travellers by offering them the comfort, security and privacy of a home away from home as well as enriching cultural and social experiences. As an extension of our service ethic, our community programmes aim to improve the lives of the next generation.

RESIDENTS’ PROGRAMMES To create opportunities for residents to socialise and network, and to introduce them to the local culture, Ascott organises festive celebrations, cultural workshops, language courses and local tours on a regular basis.

For example, in Vietnam, a ‘Secret of Lotus’ workshop helped residents gain new insights on this flower much revered by the Vietnamese, and offered handy tips on using the lotus for home decoration, cooking and health. Residents also learnt Vietnamese through a two-and-a-half month course that included visits to the local market with their language teacher. In Japan, residents were introduced to the tradition of Sakura-viewing – they enjoyed the cherry blossoms in full bloom during a scenic cruise in Spring.

Local tours take residents to notable attractions in their host cities and beyond. For example, in Thailand, residents enjoyed a day trip to Koh Kret where they learnt about the lives of the Mon community and their skills in pottery. In China, residents in Dalian braved sub-zero temperatures to go on a cycling trip to Xinghai Square, one of the largest squares in Asia, while residents in the Philippines trekked up the crater of one of the world’s best known active volcanoes – Taal Volcano.

Residents also get together regularly to play different sports, support their favourite sporting teams, or simply to ‘rest and relax’. For example, our residents in Korea came together for bowling and pool tournaments; in Australia, besides cheering on their favourite teams competing in the Australian Football League, residents also enjoyed a carnival, complete with champagne and barbeque, during Melbourne Cup.

Through these activities, many of our residents have developed friendships with the locals, expanded their network and experienced the warmth of a home away from home with us.

32 Residents’ and Community Programmes CORPORATE SOCIAL RESPONSIBILITY (CSR) Ascott takes pride in being an integral part of the social fabric of the many cities around the world where we have a presence. Through our CSR programmes, we hope to make a meaningful difference to these communities.

In 2007, we continued to focus on making life better for the less-privileged. We hope that with our help, they can look forward to a better future for themselves and their families. We also kept up with on-going projects to build better homes and improve the social environment of local communities. In addition, our employees and residents around the world lent their support to global causes.

Caring for Children “Our greatest natural resource is the minds of our children,” Walt Disney once said. Echoing the great man’s sentiments, Ascott remains committed to creating a better future for our next generation.

In China, Indonesia, Korea, Malaysia, Thailand and Vietnam, Ascott’s employees and residents visited various children’s homes, schools and orphanages. At these institutions, we presented the children with school supplies, gifts, necessities, food and funds donated by our employees and residents.

For example, our employees and residents visited the Shanghai Blind School as well as Bangkok’s School for the Blind, and contributed stationery, schoolbags, equipment and funds to the schools.

In Vietnam, our employees helped to set up a library with 3,000 books to give children at the Thien Binh Orphanage in Dong Nai Province a headstart in education. Ascott also contributed equipment such as a TV and DVD player as well as necessities including rice, pillows, blankets, mosquito nets, toys, food and milk to the orphanage, which houses 150 children and 40 elderly.

In Singapore, our home base, Ascott supported the Make-A-Wish Foundation by granting the wishes of children with life-threatening diseases aged between four and 15. By fulfilling the children’s heartfelt wishes, we hoped to offer them respite and encouragement in their battle against their illnesses.

Ascott also joined hands with Kythe, a non-profit organisation in the Philippines, which aims to uplift the spirits of young patients and their families. Through the sale of Christmas tree ornaments, funds were collected to help 60 terminally-ill children.

In Europe, Ascott pledged our commitment to France’s Mécénat Chirurgie Cardiaque to raise funds for children with cardiac malfunction from countries where appropriate medical treatment is not available. Under the programme, the Non-Government Organisation (NGO) flies these children to France for treatment. The NGO also trains 10 cardiologists and paediatricians every year for a month in France. Starting 2008, Ascott will host accommodation for these doctors during their training.

Residents’ and Community Programmes 33 A Headstart for Youths Apart from our work with children, Ascott also believes in giving aspiring youths opportunities to make good in life.

For example, we offered a young man from Vietnam’s Warm Home Orphanage a job as a shoe-shine boy at Somerset Chancellor Court, Ho Chi Minh City. The 18-year-old has been performing at his best and received many compliments from residents.

In the Philippines, we provided on-the-job training at Ascott Makati for two students from Punlaan School, a non- profit technical vocational school and tourism training centre that equips young women with the employment skills necessary to break free from the poverty cycle. Following their one-month training at Ascott Makati, we have hired them as temporary kitchen staff at the property.

Building Homes, Improving Social Environments To help families affected by natural disasters and the poor from the countryside in Thailand, Ascott contributed to The Family, a local welfare organisation dedicated to the needy and underprivileged. With the support of employees, we pledged a regular collective contribution each month.

Responding swiftly to the devastating Jogjakarta earthquake of May 2006, Ascott’s employees raised funds to rebuild homes and schools. Rebuilding works of the public school, Muhammadiyah Sekolah Kalipakem II in Bantul area, continued in the following year and were completed in February 2007. In May 2007, Ascott’s employees visited the children, teachers and residents of the village to encourage them as they rebuild their lives.

In the Philippines, we kept up our support for local group Gawad Kalinga’s GK777 programme to build 700,000 homes in 7,000 communities in 7 years. Having successfully raised funds to finance the construction of seven homes in 2006, Ascott’s employees, aided by local residents, helped to build another three homes at a new site in the municipality of Maralit, Parañaque, in 2007.

In Vietnam, our employees took to the roads of Ho Chi Minh City to promote road safety. Riding in a convoy of 80 motorbikes through the busy city streets, 150 Ascott’s employees drove home the message that wearing crash helmets can save lives.

Supporting Worthy Causes Ascott’s employees and residents around the world also regularly unite to support global volunteer movements. Employees and residents in Australia, Thailand and Vietnam participated in Red Cross’ World Blood Donor Day, the Terry Fox Run in support of cancer research and the Pink Ribbon movement for breast cancer awareness.

Going Green Ascott also took active steps to protect the environment. The Group attained the ISO 14000 certification in November for putting in place environment-friendly policies and procedures.

Ascott’s flagship, Ascott Singapore Raffles Place, which is currently undergoing construction, was also given the Green Mark Award 2007 by Singapore’s Building and Construction Authority. The award recognises Ascott’s effort in conserving and preserving the facade and interiors of the heritage building. The building also has green features, such as motion-detecting lighting system and an ozone-treated swimming pool system.

34 Residents’ and Community Programmes Our People, Our Future

Investments in organisational and technological excellence make for a world-class team primed to drive Ascott’s expansion plans.

Ascott’s reputation as a global brand is rooted in our determination to recruit, engage, motivate and retain individuals who can take their place as members of a truly world-class team. Our 5,000 strong team, drawn from the local population in the countries in which we operate, is empowered to drive our aggressive global expansion. These talented individuals of various nationalities showcase the seamless integration of diverse cultures within our residences and offices throughout the world.

NURTURING A WORLD-CLASS TEAM At Ascott, our human resource goal is to optimise our human capital while simultaneously paving the way for our employees to achieve their personal and professional aspirations and goals.

To ensure a good employee-job fit, we recruit employees whose professional capacity, aspirations and values are aligned to the Group’s core values and business priorities. A competitive rewards-based system ensures that our employees are motivated and engaged in their work. To enhance service quality and inculcate a common spirit of hospitality, our employees throughout the world are groomed through standardised programmes comprising training courses, personal development initiatives, international deployment and other special assignments.

Succession plans for all key positions are in place to ensure a steady flow of talents committed to meeting the Group’s future business targets. The Executive Resource & Compensation Committee periodically reviews the talent succession and development plan.

We regularly review our employee compensation and benefits programme to keep pace with industry benchmarks and best practices. Compensation comprises a base salary and an annual bonus. All compensation elements are contingent on individual and company performance, as well as market competitiveness and conditions. The Group’s Restricted Share scheme is extended to key employees to reward them for their good work in driving Ascott’s success.

Open communication is encouraged within Ascott. Regular employee communication sessions foster a culture where employees are comfortable questioning past work practices and proactively seek avenues to improve our business processes. In addition, large-scale retreats, such as the annual Ascott Global Conference, bring together Heads of Departments from across our global offices to identify our current operational challenges and seek ways to strengthen Ascott’s global positioning.

Our People, Our Future 35 TRAINING TO EXCEL The Group sets aside 3% of total employee payroll for learning and development. In 2007, each employee underwent more than 30 hours of training.

Ascott’s commitment to developing a world-class team is demonstrated in the establishment of a global training centre, the Ascott Centre for Excellence (ACE), in Singapore, where we have our corporate headquarters. ACE is led by a team of professionals comprising 51 in-house trainers committed to ensuring consistent learning outcomes, sharing international best practices and forging strong cross-border bonds among team members.

ACE will serve as a focal point for developing future leaders, launching new initiatives to remain competitive and promoting operational readiness and service excellence among our global team members.

In line with our roadmap for human capital development, ACE runs proprietary training programmes such as the Accelerated Residence Manager Programme and Leadership Development Programme (LDP), and partners International Enterprise Singapore to offer the International Business Fellowship Programme (IBFP). These programmes train employees who have been identified as potential Heads of Departments or Residence Managers in Ascott’s core functions and corporate culture. In 2007, IBFP and LDP saw a total of 16 participants undergo 12 to 18 months of on-the-job training in Australia, China, Indonesia, the Gulf region, the Philippines and Vietnam.

In addition, ACE also offers certification programmes aimed at developing key personnel to manage the professional opening of Ascott’s properties across the globe. To date, ACE has certified close to 150 ‘Pre-Opening Process’ (POP) drivers and members to spearhead the opening of our new properties according to Ascott’s standards and requirements.

Two of our human resource development programmes have been accredited by the Singapore Workforce Development Agency’s Skills Qualifications Scheme, thus affirming that our human resource development meets national standards.

EMPOWERED BY IT In addition to nurturing our talent pool, we invested in information technology (IT) infrastructure to equip our people with the right tools to respond quickly to our customers’ needs and gain fast access to the information they require to make decisions.

Our IT platform is constantly being renewed to support our expansion plans. In 2007, additional functions were incorporated into the Global Sales Force Automation system, and China was added to the Global Central Reservation system.

Our brand and corporate websites were also revamped, resulting in faster access and allowing continuity in case of primary system failure.

An online training system was introduced to support training development and to track employee training requirements and records.

Finally, a new Business Intelligence system designed to standardise performance and revenue management reports as well as produce ad-hoc reports is currently in the final stages of development.

36 Our People, Our Future CORPORATE EMPLOYEE PROFILE By Qualification By Age Group ≥ 51 years Others 2% 11% 41–50 years 22% Diploma 14%

Bachelor’s 31–40 years Degree 52% 59%

Master’s Degree and above ≤ 30 years 16% 24%

By Length Service

6–10 years 9%

> 10 years 11%

3–5 < years 3 years 11% 69%

Our People, Our Future 37 Financial Review

FINANCIAL HIGHLIGHTS Group Financial Summary

S$’M 2003 2004 2005 2006 2007

INCOME STATEMENT Revenue 200.2 238.9 444.1 405.9 435.3 Operating EBITDA* 64.5 70.8 135.4 114.4 117.3 Profit before tax 35.8 64.6 67.5 230.0 234.9 Profit after tax & minority interest 18.5 51.8 41.9 163.6 177.3

BALANCE SHEET Total assets 2,162.8 2,491.5 2,781.0 2,315.9 2,581.6 Net borrowing/(cash) Current 114.6 413.0 239.5 105.1 (190.3) Non-current 445.3 355.7 779.0 493.6 816.3 559.9 768.7 1,018.5 598.7 626.0

SHAREHOLDERS’ EQUITY Share capital 310.3 311.0 314.4 264.4 268.4 Reserves 931.7 923.4 952.7 808.5 902.9 1,242.0 1,234.4 1,267.1 1,072.9 1,171.3

Minority interest 95.9 115.7 126.0 57.6 30.5

FINANCIAL RATIOS Return on equity (%) 1.5 4.2 3.4 14.0 15.8 Return on total assets (%) 2.2 3.7 3.9 8.1 9.2 Net debt equity ratio 0.42 0.57 0.73 0.53 0.52 Interest cover (times) 4.1 5.1 2.9 10.9 8.7

Note: Certain figures for prior years were re-stated to conform with current year classification and/or formulae.

* Operating EBITDA is defined as profit before tax excluding financing cost, depreciation, amortisation and net portfolio gains.

38 Financial Review Group Revenue (S$’M) Return on Equity and Return on Total Assets (%) Return on Equity Return on Total Assets 15.8 444.1 435.3 405.9 14.0

238.9 9.2 200.2 8.1

4.2 3.9

2.2 3.7 3.4

1.5 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Increase mainly attributable to improved contributions from existing and new properties. Increase attributable to higher portfolio gains in 2007.

Group Profit Attributable to Shareholders (S$’M) Shareholders’ Equity and Total Assets (S$’B) Shareholders’ Equity 177.3 Total Assets

163.6 2.8 2.6 2.5 2.3 2.2

1.3 1.2 1.2 1.2 1.1 51.8 41.9

18.5

2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Higher portfolio gains recorded in 2007. Net profit from operating assets remained strong at Total assets increased mainly due to investment growth in China and new markets. S$52.5 million vs S$41.9 million in 2006 despite the divestment of six properties in 2007.

Financial Review 39 OVERVIEW 2007 marked another important chapter in the history of Ascott. The Group achieved a record net profit of S$177.3 million, surpassing the previous record in 2006 by 8%. This was achieved on the back of stronger profit from the Group’s operating assets and higher portfolio gains from asset divestment and revaluation, even as the Group incurred more expenses for asset development.

The financial year also saw the Group demonstrating its proactive financial management with the successful launch of the Ascott China Fund (ACF). ACF is a closed-end private equity real estate fund dedicated to investing primarily in selected regional cities in China with strong growth potential. It was very well received with many eager investors wanting to partake in the Group’s success in China. The Fund closed with a capital commitment of US$500 million, of which the Group has a 33% stake. Essentially, ACF takes over Ascott’s role of incubating properties in China. This provides a capital-efficient vehicle for the Group to expand its presence quickly in China without the need for significant capital commitments.

The establishment of ACF complements the earlier financial initiative in 2006, which was the creation of Ascott Residence Trust (ART), the world’s first pan-Asian serviced residence real estate investment trust (REIT). Since its listing in Singapore in 2006, ART has acquired properties in Melbourne in Australia, Tianjin in China, Tokyo in Japan, Manila in the Philippines and Ho Chi Minh City in Vietnam. This brings ART’s portfolio to 36 properties with 3,461 units in 10 cities across seven countries. With ACF as an incubator and ART as an acquisition platform, the Group has transformed its overall business model into a capital-efficient and integrated platform to facilitate its growth plans, as well as to capture the full serviced residence value chain.

The Group also actively manages its portfolio and re-allocates capital by divesting mature assets and re-investing the funds into higher-yielding assets. In 2007, the Group achieved net divestment gains of S$112.8 million, mainly from the divestment of The Masters Golf & Country Club in China, Hotel Asia in Singapore and Somerset Bayswater in the United Kingdom. The proceeds were re-invested in China, Germany, India, Japan, Russia, Singapore and the United Kingdom with investment commitment of about S$576 million. The Group charted new frontiers by securing management contracts in new markets such as Georgia, Kazakhstan and Russia, as well as in Japan, Thailand and Vietnam where it has an established operating record. In total, seven management contracts were secured.

Of the new investments and management contracts secured, close to 1,500 serviced residence units were situated in new cities, further extending the Group’s global footprint. As at December 2007, the Group’s portfolio count surpassed the 20,000-unit mark to reach 20,449 units.

At the operating level, profit from operating assets rose 25% to S$52.5 million in 2007 compared to the year before, reflecting the buoyant economic environment and strong foreign direct investments in the markets where the Group operates. Consequently, the Group experienced growth in revenue per available unit (RevPAU) across most geographical regions, which also translated positively to higher fee-based income from management contracts and the management of ART and ACF.

In summary, the record net profit of S$177.3 million for 2007 was underpinned by significant portfolio gains unlocked from the Group’s asset divestments, as well as from unrealised revaluation gains from investment properties which still remain within the Group. The robust performance from its operating assets continued to provide a stable earnings platform as the Group sought opportunistic growth through asset development and incubation. The Group’s financial position remained strong, with a healthy operating cash flow generation of S$88.1 million, debt-equity ratio at 0.52 and interest cover of 8.7 times.

40 Financial Review Revenue by Business Segment (S$’M) Operating EBITDA by Business Segment (S$’M) 2006 2006 2007 2007

435.3 117.3 418.8 114.4 405.9 108.9 384.7 102.9

11.5 8.4 21.2 16.5

Serviced Retail & Others Total Serviced Retail & Others Total Residence Residence

Net Profit (S$’M) Net profit from operating assets Portfolio gains, net of revaluation deficits/surpluses and impairments Expenses incurred for development 177.3

163.6 52.5

41.9

154.6 136.0

(14.3) (29.8) 2007 2006

REVENUE The Group recorded total revenue of S$435.3 million for 2007, an increase of 7% over that of 2006. This increase was underpinned by overall RevPAU growth of S$5 from S$125 in 2006 to S$130 in 2007, as well as higher fee-based income, which includes serviced residence management fees, REIT and fund management fees. Serviced residence revenue contributed about 96% of total group revenue as the Group has successfully been phasing out the remaining non-serviced residence operations over the years.

EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (EBITDA) In tandem with the higher revenue, operating EBITDA for 2007 at S$117.3 million grew by 3% over 2006 on the back of better operating performance from the Group’s serviced residence operations and higher fee-based income.

Financial Review 41 Balance Sheet As at 31 Dec 2007

Group 2007 2006 S$’000 S$’000

Non-Current Assets Property, plant and equipment 1,541,736 1,411,857 Intangible assets 25,077 24,084 Investment property 50,947 48,681 Properties under development 11,339 121,387 Interest in – associates 305,382 183,279 – jointly controlled entities 83,798 56,254 Other financial assets 2,199 2,866 Deferred tax assets 22,535 21,153 Other receivables 2,425 1,569 2,045,438 1,871,130

Current Assets Properties held for sale, at cost 10,200 9,230 Inventories 189 356 Trade and other receivables 166,267 160,683 Cash and bank balances 359,555 274,481 536,211 444,750 Total Assets 2,581,649 2,315,880

Equity Attributable to Equity Holders of the Company Share capital 268,464 264,367 Reserves 902,883 808,510 1,171,347 1,072,877 Minority interests 30,485 57,559 Total Equity 1,201,832 1,130,436

Non-Current Liabilities Financial liabilities 797,451 493,630 Amounts due to minority shareholders of subsidiaries 2,865 3,905 Deferred income – 7,811 Deferred tax liabilities 17,937 17,105 818,253 522,451

Current Liabilities Trade and other payables 253,887 205,891 Financial liabilities 195,133 381,202 Current tax payable 112,544 75,900 561,564 662,993 Total Liabilities 1,379,817 1,185,444

Total Equity and Liabilities 2,581,649 2,315,880

42 Financial Review Consolidated Income Statement Year ended 31 Dec 2007

Group 2007 2006 S$’000 S$’000

Revenue 435,277 405,866 Cost of sales (310,669) (287,651) Gross Profit 124,608 118,215 Other operating income 3,307 5,294 Administrative expenses (55,307) (49,125) Other operating expenses (2,260) (1,901) Profit from operations 70,348 72,483

Share of results of associates and jointly controlled entities 59,057 1,208 Comprising: Share of operating results 5,401 1,347 Share of non-operating results 56,915 1,997 Share of tax (3,259) (2,136)

Non-operating income (net) 134,491 183,206 Exchange gains (net) 6,302 499 Interest income 11,140 12,337 Finance costs (46,436) (39,723) Profit before tax 234,902 230,010 Income tax expense (55,196) (64,260) Net Profit for the Year 179,706 165,750

Attributable to: Equity holders of the Company 177,266 163,602 Minority interests 2,440 2,148 Net Profit for the Year 179,706 165,750

Financial Review 43 The Ascott Group Directory As at 11 Apr 2008

For worldwide reservations, call (65) 6272 7272

SOUTHEAST ASIA MALAYSIA SINGAPORE Kuala Lumpur Reservations 1800 272 7272 Reservations 1800 806 306 (Local toll-free) INDONESIA (Local toll-free) Jakarta Ascott Singapore Raffles Place Reservations 00180 365 7878 Ascott Kuala Lumpur (Opening 2008) (Local toll-free) No 9 Jalan Pinang 50450 Kuala Lumpur, Malaysia Somerset Bencoolen Ascott Jakarta Tel (60-3) 2142 6868 No 51 Bencoolen Street Jalan Kebon Kacang Raya No 2 Singapore 189630 Jakarta 10230, Indonesia Somerset Ampang Tel (65) 6849 4688 Tel (62-21) 391 6868 (Opening 2010) Somerset Compass Somerset Berlian Somerset Seri Bukit Ceylon No 2 Mount Elizabeth Link Jalan Permata Berlian V No 8 Lorong Ceylon Singapore 227973 Permata Hijau Off Jalan Raja Chulan Tel (65) 6732 7737 Jakarta 12210, Indonesia 50250 Kuala Lumpur, Malaysia Tel (62-21) 5366 8888 Tel (60-3) 2055 8888 Somerset Grand Cairnhill No 15 Cairnhill Road Somerset Grand Citra Marc Service Suites Singapore 229650 Jalan Prof Dr Satrio Kav 1 (Corporate Leasing) Tel (65) 6835 2900 Kuningan No 3 Jalan Pinang Jakarta 12940, Indonesia 50450 Kuala Lumpur, Malaysia Somerset Liang Court Tel (62-21) 522 5225 Tel (60-3) 2140 2220 No 177B River Valley Road Singapore 179032 Somerset Kuningan Seri Bukit Ceylon Residence Tel (65) 6337 0111 (opening 2012) (Corporate Leasing) No 8 Lorong Ceylon Somerset Orchard Country Woods Off Jalan Raja Chulan No 160 Orchard Road (Corporate Leasing) 50250 Kuala Lumpur, Malaysia #06-01 Orchard Point Jalan WR Supratman Tel (60-3) 2055 8888 Singapore 238842 Pondok Ranji-Rengas, Ciputat Tel (65) 6735 0500 Jakarta 15412, Indonesia Tiffani by i-ZEN Tel (62-21) 740 1245 (Corporate Leasing) Citadines Singapore Mount Sophia (Opening 2010) (Opening 2009) Surabaya Reservations (62-31) 732 8738 Kuching Riverdale Residence Reservations (60-82) 250 958 (Corporate Leasing) Somerset Surabaya Hotel No 346 River Valley Road & Serviced Residence Somerset Gateway Singapore 238373 Jalan Raya Kupang Indah No 9 Jalan Bukit Mata Tel (65) 6736 9746 Surabaya 60189, Indonesia 93100 Kuching Tel (62-31) 732 8738 Sarawak, Malaysia Tel (60-82) 250 958

44 The Ascott Group Directory The Heritage Citadines Bangkok Sukhumvit 16 VIETNAM (Corporate Leasing) 38, Sukhumvit 16 Hanoi Mount Pleasant Road Sukhumvit Road, Klongtoey Reservations (84-4) 9 342 342 Tel (65) 6736 9746 Bangkok 10110, Thailand Tel (66-2) 663 8777 Somerset Grand Hanoi No 49 Hai Ba Trung Street THAILAND Citadines Bangkok Sukhumvit 23 Hanoi, Vietnam Bangkok (Opening 2008) Tel (84-4) 9 342 342 Reservations 1800 888 272 (Local toll-free) Omni Tower Somerset Hoa Binh No 69 Sukhumvit Soi 4 (Soi Nanatai) (Opening 2008) Ascott Bangkok Sathorn Klongtoey No 187 South Sathorn Road Bangkok 10110, Thailand Somerset West Lake Yannawa, Sathorn Tel (66-2) 656 8300 No 254D Thuy Khue Road Bangkok 10120, Thailand Hanoi, Vietnam Tel (66-2) 676 6868 Tel (84-4) 843 0030 THE PHILIPPINES Somerset Amar Gardens Manila Ho Chi Minh City (Opening 2008) Reservations (63-2) 755 8888 Reservations (84-8) 822 9223 / (84-8) 823 6123 Somerset Grand Sukhumvit Ascott Makati (Opening 2010) Glorietta 4, Ayala Center Somerset Chancellor Court Makati City 1224, Philippines No 21–23 Nguyen Thi Minh Somerset Lake Point Tel (63-2) 729 8888 Khai Street, District 1 No 41 Sukhumvit Soi 16 Ho Chi Minh City, Vietnam Sukhumvit Road, Klongtoey Somerset Millennium Tel (84-8) 822 9197 Bangkok 10110, Thailand No 104 Aguirre Street Tel (66-2) 663 1234 Legaspi Village Somerset Ho Chi Minh City Makati City 1229, Philippines No 8A Nguyen Binh Khiem Street Somerset Park Suanplu Tel (63-2) 888 0505 District 1 No 39 Soi Suanplu Ho Chi Minh City, Vietnam South Sathorn Road Somerset Olympia Tel (84-8) 822 8899 Bangkok 10120, Thailand No 7912 Makati Avenue Tel (66-2) 679 4444 Makati City 1200, Philippines Somerset Saigon City Tel (63-2) 812 1010 (Opening 2010) Somerset Sukhumvit Thonglor (Opening 2009) Somerset Salcedo HV Dela Costa Citadines Bangkok Sukhumvit 8 corner LP Leviste Street (Opening 2008) Salcedo Village Makati City 1227, Philippines Citadines Bangkok Sukhumvit 11 Tel (63-2) 888 6668 (Opening 2008)

The Ascott Group Directory 45 NORTH ASIA Dalian Shenzhen Somerset Harbour Court Ascott Shenzhen Maillen No 55 Renmin Road (Opening 2009) CHINA Zhongshan District Reservations 400 820 1028 Dalian 116001, China Somerset Garden City (Local toll-free) Tel (86-411) 8899 1888 (Opening 2009)

Beijing Guangzhou Suzhou Ascott Beijing Ascott Guangzhou Somerset Emerald City No 108B Jian Guo Road No 73 Tianhedong Road No 436 Changjiang Road Chaoyang District Tianhe District Suzhou New District Beijing 100022, China Guangzhou 510630, China Suzhou 215011, China Tel (86-10) 6567 8100 Tel (86-20) 8513 0388 Tel (86-512) 6818 6611

Somerset Grand Fortune Garden Springdale Serviced Residence Citadines Suzhou Lejia No 46 Liangmaqiao Road Tower B1, No 105 Tiyuxi Road (Opening 2009) Chaoyang District Tianhe District Beijing 100016, China Guangzhou 510620, China Citadines Suzhou Xinghai Tel (86-10) 8451 8888 Tel (86-20) 8396 6088 Block 27 Jiacheng Gardens 58 Xinghai Street Somerset ZhongGuanCun Shanghai Suzhou Industrial Park No 15 Haidian Zhong Street Ascott Shanghai Pudong Suzhou 215021, China Haidian District No 3 Pudong Avenue Tel (86-512) 8885 8288 Beijing 100080, China Shanghai 200120, China Tel (86-10) 5873 0088 Tel (86-21) 6886 0088 Tianjin Somerset Olympic Tower Luxury Serviced Residence Somerset Xu Hui No 126 Chengdu Dao No 17 Jianhua Nan Road No 888 Shanxi Nan Road Heping District Chaoyang District Xu Hui District Tianjin 300051, China Beijing 100022, China Shanghai 200031, China Tel (86-22) 2335 5888 Tel (86-10) 6566 2200 Tel (86-21) 6466 0888 Somerset Youyi ZhongGuanCun Residence Citadines Shanghai Biyun (Opening 2009) (Corporate Leasing) Lane 450 Hongfeng Road No 15 Haidian Zhong Street Jinqiao Export Processing Zone Pudong Xi’an Haidian District Shanghai 201206, China Citadines Xi’an Central Beijing 100080, China Tel (86-21) 3860 2288 36 Zhubashi, Beilin District Tel (86-10) 5873 0088 Xi’an 710002, China Citadines Shanghai Jinqiao Tel (86-29) 8576 1188 Chongqing 55 Beijing Xi Road, Huangpu District Somerset JieFangBei Shanghai 200003, China (Opening 2009) Tel (86-21) 2308 6666

46 The Ascott Group Directory Hong Kong Gala Hachimanyama II Shochiku Square Residence Citadines Hongkong Ashley (Corporate Leasing) (Corporate Leasing) 18 Ashley Road No 2-1-2 Kamitakaido No 1-13-5 Tsukiji Tsimshatsui, Kowloon Suginami-ku Chuo-ku Hong Kong Tokyo 168-0074, Japan Tokyo 104-0045, Japan Tel (852) 2262 3062 Tel (81-3) 5575 5512 Tel (81-3) 6226 5923

Green Park Akasaka Zesty Akebonobashi JAPAN (Corporate Leasing) (Corporate Leasing) Kyoto No 5-2-10 Akasaka No 1-17 Tomihisacho Citadines Kyoto Gojo Minato-ku Shinjuku-ku (Opening 2010) Tokyo 107-6101, Japan Tokyo 162-0067, Japan Tel (81-3) 5573 8800 Tel (81-3) 5575 5512 Tokyo Reservations 0120 069 500 Joy City Koishikawa Zesty Gotokuji (Local toll-free) (Corporate Leasing) (Corporate Leasing) No 3-35-18 Otsuka No 6-42-5 Matsubara Somerset Azabu East Bunkyo-ku Setagaya-ku No 1-9-11 Higashi Azabu Tokyo 112-0012, Japan Tokyo 156-0043, Japan Minato-ku Tel (81-3) 5575 5512 Tel (81-3) 5575 5512 Tokyo 106-0044, Japan Tel (81-3) 5114 2800 Joy City Kuramae Zesty Higashi Shinjuku (Corporate Leasing) (Corporate Leasing) Somerset Roppongi No 2-24-1 Kuramae No 6-15-20 Shinjuku No 3-4-31 Roppongi Taito-ku Shinjuku-ku Minato-ku Tokyo 111-0051, Japan Tokyo 160-0022, Japan Tokyo 106-0032, Japan Tel (81-3) 5575 5512 Tel (81-3) 5575 5512 Tel (81-3) 3568 3939 Nakameguro Residence Zesty Kagurazaka I Citadines Tokyo Shinjuku (Corporate Leasing) (Corporate Leasing) (Opening 2009) No 4-13-41 Nakameguro No 2-13 Nishigokencho Meguro-ku Shinjuku-ku Asyl Court Nakano Sakaue Tokyo 153-0061, Japan Tokyo 162-0812, Japan (Corporate Leasing) Tel (81-3) 3714 1131 Tel (81-3) 5575 5512 No 1-14-12 Honcho Nakano-Ku Nibancho Park Forest Zesty Kagurazaka II Tokyo 164-0012, Japan (Corporate Leasing) (Corporate Leasing) Tel (81-3) 5575 5512 No 7-8 Nibancho No 123-3 Yaraicho Chiyoda-ku Shinjuku-ku Gala Hachimanyama I Tokyo 102-0084, Japan Tokyo 162-0805, Japan (Corporate Leasing) Tel (81-3) 3511 6828 Tel (81-3) 5575 5512 No 2-1-18 Kamitakaido Suginami-ku Tokyo 168-0074, Japan Tel (81-3) 5575 5512

The Ascott Group Directory 47 Zesty Kasugacho Zesty Shin Ekoda SOUTH ASIA (Corporate Leasing) (Corporate Leasing) No 6-4-15 Kasugacho No 1-2-2 Toyotamakami Nerima-ku Nerima-ku INDIA Tokyo 179-0074, Japan Tokyo 176-0011, Japan Bangalore Tel (81-3) 5575 5512 Tel (81-3) 5575 5512 Somerset Whitefield (Opening 2009) Zesty Koishikawa Zesty Shoin Jinja (Corporate Leasing) (Corporate Leasing) Chennai No 5-41-7 Koishikawa No 4-3-3 Setagaya Somerset Greenways Bunkyo-ku Setagaya-ku (Opening 2008) Tokyo 112-0002, Japan Tokyo 154-0017, Japan Tel (81-3) 5575 5512 Tel (81-3) 5575 5512 Citadines Chennai Boulevard (Opening 2009) Zesty Komazawa University II Zesty Shoin Jinja II (Corporate Leasing) (Corporate Leasing) Citadines Chennai OMR Gateway No 2-12-21 Higashigaoka No 4-5-4 Setagaya (Opening 2009) Meguro-ku Setagaya-ku Tokyo 152-0021, Japan Tokyo 154-0017, Japan Hyderabad Tel (81-3) 5575 5512 Tel (81-3) 5575 5512 Citadines Hyderabad Hitec City (Opening 2010) Zesty Nishi Shinjuku III (Corporate Leasing) SOUTH KOREA No 3-18-15 Nishishinjuku Seoul AUSTRALIA & NEW ZEALAND Shinjuku-ku Reservations (82-2) 6730 8000 Tokyo 160-0023, Japan Tel (81-3) 5575 5512 Somerset Palace AUSTRALIA No 85 Susong-Dong Reservations 1800 766 377 Zesty Sakura Shinmachi Jongno-Gu (Local toll-free) (Corporate Leasing) Seoul 110-885, South Korea No 3-11-3 Tsurumaki Tel (82-2) 6730 8888 Hobart Setagaya-ku Somerset on Salamanca Tokyo 154-0016, Japan No 8 Salamanca Place, Hobart Tel (81-3) 5575 5512 TAS 7000, Australia Tel (61-3) 6220 6600

Somerset on the Pier Elizabeth Street Pier, Hobart TAS 7000, Australia Tel (61-3) 6220 6600

48 The Ascott Group Directory Melbourne EUROPE Citadines Paris La Défense Somerset Gordon Heights Paris La Défense No 19-25 Little Bourke Street 1-8 boulevard de Neuilly Melbourne BELGIUM 92400 Courbevoie, France VIC 3000, Australia Brussels Tel (33) 1 58 13 57 57 Tel (61-3) 9267 5400 Reservations (33) 1 41 05 79 05 Citadines Paris Les Halles Somerset Gordon Place Citadines Bruxelles Sainte-Catherine 4 rue des Innocents No 24 Little Bourke Street 51 quai au Bois à Brûler 75001 Paris, France Melbourne 1000 Bruxelles, Belgium Tel (33) 1 40 39 26 50 VIC 3000, Australia Tel (32-2) 221 14 11 Tel (61-3) 9663 2888 Citadines Paris Louvre Citadines Bruxelles Toison d’Or 8 rue de Richelieu Somerset on Elizabeth 61-63 avenue de la Toison d’Or 75001 Paris, France No 250 Elizabeth Street 1060 Bruxelles, Belgium Tel (33) 1 55 35 28 00 Melbourne Tel (32-2) 543 53 53 VIC 3000, Australia Citadines Paris Maine- Tel (61-3) 8665 8888 Montparnasse FRANCE 67 avenue du Maine Citadines Melbourne on Bourke Reservations 0 825 333 332 75014 Paris, France (Opening 2010) (0,15 /min) Tel (33) 1 53 91 27 00

Sydney Paris Citadines Paris Montmartre Somerset Darling Harbour Citadines Paris Austerlitz 16 avenue Rachel No 252 Sussex Street 27 rue Esquirol 75018 Paris, France Darling Harbour, Sydney 75013 Paris, France Tel (33) 1 44 70 45 50 NSW 2000, Australia Tel (33) 1 56 61 54 00 Tel (61-2) 8280 5000 Citadines Paris Opéra- Citadines Paris Bastille Marais Grands Boulevards 37 boulevard Richard Lenoir 18 rue Favart NEW ZEALAND 75011 Paris, France 75002 Paris, France Auckland Tel (33) 1 53 36 90 00 Tel (33) 1 40 15 14 00 Reservations 0800 272 688 (Local toll-free) Citadines Paris Bastille Nation Citadines Paris Opéra 14-18 rue de Chaligny Vendôme Prestige Ascott Auckland Metropolis 75012 Paris, France 2 rue Edouard VII No 1 Courthouse Lane Tel (33) 1 40 04 43 50 75009 Paris, France Auckland, New Zealand Tel (33) 1 40 06 56 00 Tel (64-9) 300 8800 Citadines Paris Didot Alésia 94 rue Didot Citadines Paris Place d’Italie 75014 Paris, France 18 place d’Italie Tel (33) 1 53 90 38 00 75013 Paris, France Tel (33) 1 43 13 85 00

The Ascott Group Directory 49 Citadines Paris Saint- Ferney-Voltaire Citadines Marseille Prado Chanot Germain-des-Prés Citadines Genève Ferney-Voltaire 9-11 boulevard de Louvain 53 ter, quai des Grands-Augustins 34 rue de Genève 13008 Marseille, France 75006 Paris, France 01210 Ferney-Voltaire, France Tel (33) 4 96 20 65 00 Tel (33) 1 44 07 70 00 Tel (33) 4 50 42 68 00 Montpellier Citadines Paris Tour Eiffel Grenoble Citadines Montpellier Antigone 132 boulevard de Grenelle Citadines Grenoble 588 boulevard d’Antigone 75015 Paris, France 9-11 rue de Strasbourg 34000 Montpellier, France Tel (33) 1 53 95 60 00 38000 Grenoble, France Tel (33) 4 99 52 37 50 Tel (33) 4 76 15 02 00 Citadines Paris Trocadéro Citadines Montpellier Sainte-Odile 29 bis, rue Saint-Didier Lille 195 rue du Pré aux Clercs 75116 Paris, France Citadines Lille Centre 34090 Montpellier, France Tel (33) 1 56 90 70 00 Avenue Willy Brandt-Euralille Tel (33) 4 99 61 95 00 59777 Lille, France Citadines Paris Tel (33) 3 28 36 75 00 Nice Voltaire République Citadines Nice Buffa 75 bis, avenue Parmentier Lyon 21 rue Meyerbeer 75011 Paris, France Citadines Lyon Part-Dieu 06000 Nice, France Tel (33) 1 55 28 08 20 91-95 rue Moncey Tel (33) 4 97 03 28 50 69003 Lyon, France Outside Paris Tel (33) 4 78 14 90 00 Citadines Nice Promenade Aix-En-Provence 3-5 boulevard François Grosso Citadines Aix Jas de Bouffan Citadines Lyon Presqu’île 06000 Nice, France 4 avenue Achille-Empéraire 2 rue Thomassin Tel (33) 4 93 97 95 00 13090 Aix-en-Provence, France 69002 Lyon, France Tel (33) 4 42 52 56 00 Tel (33) 4 72 40 40 50 Strasbourg Citadines Strasbourg Kléber Bordeaux Marseille 50-54 rue du Jeu des Enfants Citadines Bordeaux Mériadeck Citadines Marseille Castellane 67000 Strasbourg, France 25 rue Jean Fleuret 60 rue du Rouet Tel (33) 3 90 22 47 00 33000 Bordeaux, France 13006 Marseille, France Tel (33) 5 57 01 62 70 Tel (33) 4 96 20 11 00 Toulouse Citadines Toulouse Wilson Cannes Citadines Marseille Centre 8 boulevard de Strasbourg Citadines Cannes Carnot 4 place Pierre Bertas 31000 Toulouse, France 1 rue le Poussin (11, rue Sainte Barbe) Tel (33) 5 34 41 75 00 06400 Cannes, France 13001 Marseille, France Tel (33) 4 97 06 92 00 Tel (33) 4 96 17 12 00

50 The Ascott Group Directory GEORGIA SPAIN Citadines London Trafalgar Square Tbilisi Barcelona 18-21 Northumberland Avenue Citadines Tbilisi Freedom Square Reservations 902 200 699 London WC2N 5EA (Opening 2009) United Kingdom Citadines Barcelona Ramblas Tel (44) 207 766 3700 Ramblas 122 GERMANY 08002 Barcelona, Spain St Marks Berlin Tel (34) 932 701 111 No 300 City Road Reservations 0 30 88 77 60 London EC1V 2PW United Kingdom Citadines Berlin Olivaer Platz UNITED KINGDOM Tel (44) 207 253 2039 Olivaer Platz 1 Reservations 0 800 376 38 98 10707 Berlin-Wilmersdorf (Local toll-free) Germany GULF REGION Tel (49) 3088 7760 Edinburgh, Scotland Citadines Edinburgh Quartermile Munich (Opening 2009) BAHRAIN Citadines Munich Arnulfpark Manama (Opening 2009) London, England Somerset Al Fateh Ascott London Mayfair PO Box 15534, Adliya No 49 Hill Street, Mayfair Kingdom of Bahrain KAZAKHSTAN London W1J 5ND Tel (973) 1781 1889 Aktau United Kingdom Citadines Aktau Tel (44) 207 499 6868 (Opening 2009) QATAR Citadines London Barbican Doha Astana 7-21 Goswell Road Somerset West Bay Ascott Astana London EC1M 7AH (Opening 2008) (Opening 2010) United Kingdom Tel (44) 207 566 8000 UNITED ARAB EMIRATES RUSSIA Citadines London Holborn- Dubai Moscow Covent Garden Reservations (971-4) 404 9452 Somerset Strogino 94-99 High Holborn (Opening 2010) London WC1V 6LF Somerset Jadaf United Kingdom PO Box 122161 Dubai Tel (44) 207 395 8800 United Arab Emirates Tel (971-4) 324 6111 Citadines London South Kensington 35A Gloucester Road London SW7 4PL United Kingdom Tel (44) 207 543 7878

The Ascott Group Directory 51 Corporate Office

Jennie Chua (Ms) ASCOTT CENTRE FOR HUMAN RESOURCE President & CEO EXCELLENCE Lau Yin Cheng Willie Ong SVP, Human Resource Chong Kee Hiong Head, Ascott Centre for Excellence Deputy CEO (Finance & Investment) INFOCOMM SYSTEMS BRAND & MARKETING Robert Adam Gerald Lee Anthony Khoo VP, Infocomm Systems Deputy CEO (Operations) SVP, Brand & Marketing INTERNAL AUDIT Hazel Chew (Ms) Celina Low (Ms) Leslie Khoo Chief Financial Officer VP, Corporate Communications VP, Internal Audit

Ee Chee Hong Cinn Tan (Ms) INVESTOR RELATIONS CEO (China) VP, Sales & Distribution Lilian Goh (Ms) Head, Investor Relations Ng Lai Leng (Ms) Philomena Ang (Ms) Chief Corporate Officer AVP, Marketing Communications LEGAL & CORPORATE SECRETARIAL Tony Soh BUSINESS DEVELOPMENT & Lam Chee Kin Chief Strategy & Planning Officer ASSET MANAGEMENT VP, Legal & Corporate Secretarial Ronald Tay Chief Investment Officer OPERATIONS Alfred Ong Gerard Weller SVP, Operations SVP, Business Development Richard Ong FINANCE SVP, Operations Anne Chua (Ms) SVP, Group Treasury Sym Lee SVP, Operations Lionel Chua VP, Finance PRODUCT & TECHNICAL SERVICES Jordan Awyong Jean-Claude Erne AVP, Finance SVP, Product & Technical Services

Winnie Cheng (Ms) VP, Product & Technical Services

SVP – Senior Vice President VP – Vice President AVP – Assistant Vice President

52 Corporate Office THE ASCOTT GROUP LIMITED Co Reg No. 197900881N Incorporated in the Republic of Singapore No 8 Shenton Way #13-01 Singapore 068811 Tel : (65) 6220 8222 Fax: (65) 6227 2220

Ascott Centre for Excellence No 2 Anthony Road Singapore 229956 Tel : (65) 6500 3333 Fax: (65) 6500 3460

For business development enquiries Email: [email protected]

For global sales enquiries Email: [email protected]

For media enquiries Email: [email protected]

All information is accurate at the time of printing.

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